Top Cannabis Companies Have Lost Almost $10 Billion In Market Value Since Vaping Crisis Began

  • 📰 Forbes
  • ⏱ Reading Time:
  • 62 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 53%

Business News News

Business Business Latest News,Business Business Headlines

Since vaping season began, top cannabis companies have lost $10 billion in market value by skleb1234

The vaping crisis has helped cool once white-hot cannabis companies—which may eventually offer legal vaping products—with a $10 billion drop in market value.

Four of the biggest cannabis companies, Tilray, Canopy Growth, Aurora Cannabis and Cronos Group—have lost around $10 billion in market value since the CDCThe ongoing health scares in the U.S. have created more uncertainty for cannabis investors and could negatively impact companies’ sales as Canada legalizes vaping products later this year. of the market.

Also hurting cannabis stocks: Profitability hasn’t materialized as quickly as expected, says Matt Markiewicz, managing director of The Cannabis ETF, which tracks CBD and THC companies. While cannabis will likely be a massive industry, these newly public companies are still learning how to manage Wall Street expectations—and that has been a “painful learning process,” Markiewicz says.

“In the long run, [the vaping crisis] is just a bump in the road,” says Morningstar analyst Kristoffer Inton, who predicts that the real growth opportunity for cannabis companies is in the underdeveloped derivatives market, such as edibles and beverages.“As an investor you have to think about how these companies are all essentially playing with one hand behind their back—when that hand is untied, what will their true business potential be?” says Markiewicz.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 394. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bank of America: 14 top millennial and Gen Z-exposed stock picks - Business InsiderThe bank published an updated list of picks for companies exposed to millennials and Gen Z in the latest update to its 'Primer Picks' list. Q: What do 4 girls at a vineyard have to do with stockstowatch for millenials ? Q: Why are they all women, & why are they all white? Just curious.
Source: BusinessInsider - 🏆 729. / 51 Read more »